If you haven’t heard by now, Sony is pulling production of its less-than popular 20GB PlayStation 3 model, the lower-end (and cheaper) edition of its next-gen console.  With even the 60GB version sitting on store shelves nationwide, it isn’t particularly surprising.  However, it is evidence that both Sony and even Microsoft are still learning about the console crowd, years after they entered the market.

First signs that Sony would yank the plug on its 20GB PS3 model emerged when the company jerked its basic edition off the official online store.  Yesterday, retailers like Amazon, Best Buy, and EB Games did the same.  With consumer support for the 60GB version low and 20GB edition non-existent, the $499 PS3 is officially dead.

So, why the axe?

Both Sony and competitor Microsoft are learning that few gamers, or techies in general, appreciate any edition that immediately leaves them inferior to the Jones’.  Microsoft’s “Core” Xbox 360 system, which shipped with no storage abilities whatsoever, also plummeted shortly after liftoff.  Although MS has yet to end production of the Core, it’s been fairly apparent from the start that it was a wasted effort.

Further evidence of the “study ‘n sell” approach by these companies can be seen through Microsoft’s release of the Xbox 360 “Elite”, a high-end edition of the console that offers HDMI, a 120GB hard drive, and most importantly, blackness.  Let’s face it, for all intents and purposes that console exists simply because it looks cool.

And, to keep up with fellow hardware obsessee, Sony.

On the other side of the gaming spectrum is Nintendo, which is still soaking up the mainstream sunshine. 

The company recently donated 100 party packs of its Wii to US YMCA chapters, informing the media, “Consumers all over America are telling us the Wii helps them to stay active and fit and also gives them another reason to be together as a family.”

Although I was never a fan of Family Matters – or that ridiculous theme song – everything sure does look and sound rosy at Nintendo. 

It’s increasingly making Sony and Microsoft’s bumbled, confused approach to hardware look especially dysfunctional.